Exchange Rate Determination
Authored by DAHNA MAE ANTIVOLA JACOB
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
A decline in a currency's value
Appreciation
Devaluation
Revaluation
Depreciation
2.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
Which exchange rate system is most susceptible to speculative attacks?
Fixed exchange rate
Floating exchange rate
Either of the two
Neither of the two
3.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
Which of the following is not a trade-related factor?
Income Differential
Government Trade Restrictions
Capital Flow Restrictions
Inflation Differential
4.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
If a country's central bank raises interest rates, what is the likely effect on its currency?
Depreciation
Appreciation
No change
Increased volatility
5.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
Which of the following factors would increase the demand for a country's currency?
A decrease in interest rates
An increase in inflation
An increase in the country's exports
A decrease in the country's imports
6.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
The government of foreign countries can influence the equilibrium exchange rate in the ff ways, except
affecting macro variables (inflation, interest rates, and income levels)
imposing foreign trade barriers
imposing minimum wage levels
imposing foreign exchange barriers
7.
MULTIPLE CHOICE QUESTION
30 sec • 2 pts
Real interest rate = Nominal interest rate - Inflation rate
This relationship is sometimes called
Fisherman effect
Fisherfolks effect
Fisher effect
Fisherwoman effect
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